CIL cancels maiden tender

The state-owned CIL has cancelled its first tender for short-term coal imports, in which Adani Enterprises was the lowest bidder. Adani Enterprises, which had previously quoted around Rs 17,000 per tonne for importing 2.416 MT of coal, had been chosen for the short-term shipment. PT Bara Daya Energy, on the other hand, quoted Rs 2,000 per tonne less than Adani group firm for a medium-term tender to source an additional 6 million tonnes (MT) of coal from overseas. As a result, Coal India's board of directors decided on July 8 to cancel the short-term tender of 2.416 million tonnes, and PT Bara Daya Energy was asked to supply the indented quantity against the medium-term tender. On June 9, CIL issued its first tender to import 2.416 million tonnes of coal to ensure adequate fuel supply to the country's power plants. The move was part of the government's effort to stockpile coal in order to avoid the recurrence of power outages caused by a shortage of the fossil fuel in April. During the peak summer months of April and May, coal shortages at various gencos impacted the country's electricity supply.